MBB Annual Report 2009

AnnualReport2009

Contents list

Malta Business Foundation Board of Trustees 2009:

MAltA Hotels And RestAuRAnts

AssociAtion

Mr. George Micallef (President)

and Mr. Anthony Zahra

MAltA cHAMbeR of coMMeRce,

enteRPRise And industRy

Mr. Anton borg, Mr. John Huber,

Mr. Mario spiteri and

Mr. tancred tabone

Mr. Anthony J. tabone and Mr. stefano Mallia were superseded in July and november 2009 respectively.

1 foreword from the President 4

2 introduction from the ceo 6

3 informing on eu legislation

and Policy developments 8

4 Mbb communication initiatives 14

5 Mbb events 18

6 Mbb calendar of events 32

from thePresident

5

1 Foreword from the President

1 Foreword

looking back, when i took over

as President of the Mbb last year,

it was evident that the role of

the Mbb as an organisation had

evolved considerably since its

early years just before and during

Malta’s accession negotiations

with the eu. As President of

the Mbb board, i have strived

to ensure a more proactive role

for the organisation enabling the

Mbb to be better positioned in

delivering direct assistance to both

the parent organisations as well

as to the general membership. the

bureau’s development strategy was

therefore realigned primarily to

strengthen the organisation’s own

distinct identity whilst focusing at

the same time on the expansion of

the services portfolio.

the development strategy was

implemented in conjunction with

a comprehensive restructuring

process steered through by

our newly-appointed ceo

Mr. Joe tanti, who oversaw

the appointment of a team of

new executives as well as the

strengthening of the human

resources at the brussels office.

Ms. Mariella scicluna and Ms.

Amanda sciortino joined the Mbb

Malta staff complement, whilst

Mr. yves cordina was recruited to

assist the Permanent delegate at

the brussels office. furthermore,

the restructuring process also

saw the relocation of the Malta

office from its old premises at

the Malta chamber in Valletta

to the prestigious casa leone in

floriana. We believe, the move to

the new offices complements the

overall drive to expand the Mbb’s

services and activities.

on a more long-term perspective, it

remains an important operational

objective of the Mbb to keep

working towards greater revenue-

generation capabilities for the

organisation. this will be a

gradual process to be achieved

through a structured well-

planned process allowing the

Mbb to significantly consolidate

its presence and influence, both

locally as well as within the wider

eu ambit.

this Annual Report provides

readers with a glimpse yet

comprehensive insight into the

Mbb’s various activities and

initiatives it has undertaken

throughout 2009. the results

achieved so far demonstrate

that the Mbb is slowly but

indefatigably reaching its strategic

goals of heightening its presence

at both national and eu-level.

nonetheless, there is no room for

complacency and there is clear

scope for a lot more that can be

done and indeed, should be done

with the appropriate resources.

finally, i take this opportunity to

thank our ceo, our Permanent

delegate in brussels and the

executives at the Mbb for the

unrelenting commitment and hard

work. A word of thanks also goes

to the respective director-Generals

of the Malta chamber and the

MHRA, and last, but certainly not

least to my fellow colleagues on the

Mbb board of trustees. i wish the

Mbb and the new President all the

success possible!

George MicallefPResident

MAltA business buReAu

As President of the Mbb,

i am very pleased to

present our Annual

Report which records the various

activities and initiatives which the

Mbb has undertaken throughout

2009. this Annual Report tracks

the developments that have led to

the enhanced role that the Mbb is

currently exercising through an

enhanced presence at both national

and eu level. i can proudly say

that the core objective set out for

2009 has been achieved and indeed

attained successfully.

4 Mbb Annual Report 2009


from the

7

ceo

2 Introduction from the CEO

2 Introduction

strategy. through our new

publication, business Agenda

and a revamped website, the Mbb

has raised its profile on both

national and eu level, while also

strengthening its services package

to members.

business Agenda aims to provide

interesting valuable and timely

information imbued with eu

perspective yet relevant to the local

business scenario. the updated

website is a parallel exercise to the

launch of our publication, aimed to

provide a more value added service

by becoming more accessible to

our members. i am pleased to say

that after months of hard work and

enthusiasm from the team at Mbb,

these initiatives have been well

received by the majority.

the adoption of a business

Manifesto has also been a

milestone for the Mbb, which

gave a clearer direction of what

the Maltese business community

wants to achieve through its

representation at eu level. the

Manifesto details the needs

and concerns of local business

within the eu and outlines

how MePs can safeguard and

promote our local business needs.

it proposes a set of concrete

and realistic recommendations,

grounded on past experiences

as well as on the expectations of

thousands of Maltese businesses.

throughout 2010 the Mbb

intends to consolidate the efforts

brought through the business

Manifesto by means of a number

of events enabling businesses

to meet MePs to create an open

and direct channel of dialogue

and discussion, aimed to voice

concerns and really achieve some

tangible answers and results. Apart

from creating the Manifesto, the

Mbb has also issued a number

of other important reports,

namely: settling late Payments

on time, communication

on cross-border business to

consumer e-commerce in the eu,

consultation on the future eu 2020

strategy and last but surely not

least, the consultation Report on

the Post i2010 ict strategy.

throughout 2009 the Mbb has also

taken the lead on a number of eu

initiatives impacting the Maltese

business community. our events,

namely the business breakfast on

late Payments and that about the

services directive, have set the ball

rolling and have created a sense of

heightened reaction and changes

coming especially from the local

political front. throughout the

coming months we will continue to

push these debates, for heightened

action rather than reaction on

these topics of interest for Maltese

business.

this report therefore looks back at

our accomplishments throughout

the last year, but it also looks

ahead to our future roles and

ambitions. Here at the Mbb we

are on a journey of growth and

development, and we are pleased

with the progress that has been

made throughout 2009. throughout

the coming months we will strive to

be of better service to our members

and to strongly communicate the

agenda for business, to ensure that

it is heard within the appropriate

institutions, both at a national and

european level.This year has been a year

of substantial change and

development at the Mbb.

in 2009 we have tried to balance

the need to deliver a service to our

members with the imperative of

developing and updating the means

which enable the Mbb to raise its

profile and become closer to its

members.

during the past months the Mbb

has gone through a restructuring

process which included the

recruitment of new executive

staff, a new office and a renewed

Joe tanticHief executiVe officeR

MAltA business buReAu

8 Mbb Annual Report 2009 9

3 Informing: EU Legislative and Policy Developments

3 Informing on

in the first few months of the

year, the Report on the success

stories project entitled: Maltese

business success Arising out of

eu Membership, survey evidence

and useful lessons was issued. the

business success stories project’s

results are carried in this report,

produced and published by

dr. Gordon cordina, and the

findings indicate that eu

membership has in the main

benefitted businesses which

were proactive in exploiting

opportunities created by the

implementation and enforcement

of standards as well as those

businesses who took the plunge

into the internal market aided also

by reduced currency exchange

costs following Malta’s currency

changeover to the ‘euro’. the

business success project, aimed

at assessing the extent to which

these benefits were perceived

by thirty-one firms, considered

to be successfully operating in

Malta following eu membership,

and to derive policy implications

inspiring ‘best practices’ that

could be adopted by other local

businesses.During 2009 the Mbb has

worked on a number

of topics which were

determined at eu level and which

have a close impact on Maltese

business. throughout the year, the

Mbb has issued five key reports

aimed to inform and support the

Maltese business community.

the report also highlights the

importance for public authorities

to support business in order to

access funding, better exploit the

commercial opportunities afforded

by the european single market

whilst channelling adequate

resources for developing human

capital. funding opportunities,

according to the report were

undoubtedly relevant, especially

for training, environmental

management and improvements

in business operational systems,

but their importance to overall

business success was somewhat

less pronounced. the main lessons

emerging from the report regard

the need to focus on product

innovation, specialisation and

distribution networks supported

by strategic long-term planning at

both enterprise and sector-level.

the report was presented at the

conference on business success

& the Global economic Recovery

which was organised by the Mbb

and the european commission

Representation office in Malta on

the 27th March 2009.

the ‘settling late Payments

on time: Analysis and

Recommendations on the Recast of

the eu late Payments directive’

report was issued in July. the

Mbb collated this report based

on the feedback received from

eu legislation& Policydevelopments

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member companies through a

survey conducted within the

Malta chamber’s business section

meetings and a questionnaire

circulated over a number of weeks.

the survey had the dual aim

of eliciting reactions to the

commission’s recast proposals of

the late Payments directive, while

also assessing the competitiveness-

related implications on the late

settlement of invoices on the

Maltese sMe segment, especially

within the context of the

international economic downturn.

the overall report finds

considerable problems with

belated payments, both in

terms of business-to-business

transactions and also payments by

public authorities to the private

sector. the report portrays a

clear disproportionate incidence

in terms of both frequency and

effective duration of outstanding

payments by public authorities

in Malta when compared to those

which occur within the private

sector.

the effective average payment

delays suffered by suppliers are

a matter of grave concern given

the wide fluctuations within the

in order to gauge the impacts of

the i2010 strategy, the commission

issued a consultation document

on nine various aspects of ict

in europe. this was done with

an aim to increase a new ‘digital

agenda’ in order to be in a better

position to meet the emerging

challenges and to unlock the

potential of the internet as a

driver of growth, especially to

boost economic recovery. the

Mbb report analyses and portrays

the feedback gathered from the

Malta chamber ict members,

to create a common position

with that of eurochambres and

businesseurope.

payment timeframes registered

in both business-to-business and

public-to-private transactions.

A remarkable variation in the

outstanding payment periods

between business-to-business

and payments owed by public

authorities has been a key finding

of the report emerging from the

responses obtained through the

survey and questionnaire.

the report also captures the

impact on the operational

competitiveness of private firms

faced by outstanding payments.

the late Payments Report

points out that there is a clearly

discernable variation in the

impact of belated payments owed

to businesses on the one hand by

other private operators and on the

other hand by public authorities.

the effect of late payments on

business by private operators and

public authorities is completely

divergent with outstanding

payments by public authorities

retained to be considerably more

impact-intensive on the operational

margins of creditor firms.

in october and november the Mbb

also worked on a consultation

Report entitled: ‘Post-i2010

strategy: the Maltese business

Perspective on a new strategy for

the european information society’

which aims to boost europe’s lead

in ict and to unlock the benefits

of the information society for

european growth and jobs. this

programme was adopted in 2005

and reached its final stages at the

end of the year.

in this report the Mbb focused

on the most relevant sections to

Maltese-ict businesses which are:

ict for growth and jobs; creating

a 100% connected society and

economy through high-speed and

open internet for all; consolidating

the online single Market; and

making modern and efficient

public services available and

accessible to all.

the report points out various

elements, however, we feel that

one of the most important aspects

of this consultation should be

building upon the potential of ict

in order to create a stronger online

single market, as this is now more

important than ever to keep on

feeding the economic recovery.

on another note, the new digital

agenda according to the report,

must strive to develop an improved

digital infrastructure across

a broad range of commercial

services, making e-services more

accessible throughout the eu and

to create a vision based on desired

end results. As a consequence

the development of a thoroughly

connected european society and

economy through high-speed

and open internet raises serious

challenges especially with regards

to privacy, security of networks

and identified shortcomings within

eu network investments. for this

reason, the report suggests that the

upcoming strategy should strike

equilibrium between the best

possible use of these innovative

services and the associated risks

with regards to privacy and

security.

the ambition of the eu digital

single market is to be the core

guiding objective for a post-i2010

strategy. in this regard, substantial

measures must be taken into

consideration, as this would be

an initiative, from which both

companies and consumers will

benefit. for this to become a

reality there is a paramount

need, as stated in the report, to

increase consumer confidence

in online business transactions,

in particular in cross-border

e-commerce, in both goods and

services. this can be achieved

through the development of

best-practice codes of conduct

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and through the diffusion of

various eu-wide trust marks.

once this confidence is instilled

into consumer behaviour then,

e-learning, e-government and

e-health tools can be fully

developed, deployed and exploited

commercially by the private sector.

during the last month of 2009 the

Mbb also issued a ‘communication

on cross-border business to

consumer e-commerce in the

eu’. the report states that

Maltese businesses welcome the

commission’s efforts to enhance

this cross-border business to

consumer e-commerce and

agree with the commission’s

assessment that the potential for

development of the digital retail

internal market is substantial.

What is more important, the report

states that this demonstrates

a need which goes beyond

regulatory reform. it discusses the

heightened, pragmatic support

which is required to develop the

market model in a better and

quicker manner underpinning the

successful expansion of electronic

trade in the past years.

electronic transactions are a fast

growing market phenomenon,

driven in part by technological

development resulting in new

well as the transformation of

the macroeconomic climate in

europe into a framework which

encourages entrepreneurship.

the Mbb points out that the

Maltese business community feels

that the new “eu2020” strategy

should not be a repetition of

the current lisbon process, but

rather and more imperatively

it should ensure that focus is

placed on globalisation in order

for eu business to become the

leading global exporter of green

technologies and also for eu-based

industry to move up the value-

chain and beat off competition

emerging from economies enjoying

lower labour and cost structures.

the new thematic approach

proposed by the commission

puts focus on three main areas:

Knowledge, inclusive societies

and an inter-connected Greener

commercial options for consumers

and businesses alike. such market

trends are in turn reinforced by the

inherent cost/selection-competitive

edge that cross-border electronic

commercial transactions can avail

themselves of, in comparison with

conventional over-the-counter

purchases.

the report points out that the

development of an eu-wide online

single retail market cannot be

attained unless a parallel effort is

also conducted by eliminating the

obstacles hindering e-commerce

in services. the report states that

the commission’s communication

pointedly excludes the address

of these obstacles from its scope,

thus preventing a faster and wider

take-up of e-services in cross-

border commercial transactions.

the report continues by assessing

a set of concrete measures,

which should be developed in an

integrated manner to create a

better environment for the success

of e-commerce in the eu. the

concluding pages of the report are

a number of remarks reflecting

the ideas of the members of the

Malta chamber and MHRA, which

directly relate to the proposed

policy actions suggested in the

commission’s communication.

Work is also currently in progress

on a commission Working

document; ‘consultation on the

future “eu 2020” strategy’. the

commission working document

builds upon the shortcomings of

the lisbon Agenda and seeks to

give feedback from the Maltese

business perspective on the new

goals to be attained in the eu’s 2020

strategy.

the Mbb believes that overall the

commission’s paper takes good

stock of the shortcomings in the

current lisbon Process, which

have hindered the achievement

of several quantitative targets

set to be attained by 2010, as

eu economy. Maltese business

commends this proposed tri-focal

approach in so far as it correctly

identifies the crucial challenges

that need to be overcome in order

to make a success of the new

eu2020 strategy.

the report states that the new

focus in the eu2020 is about re-

energising the reform to focus on

clearer, fewer but strategically-

oriented targets. the report is in

its conclusive stages and is being

consulted by the Ministry of

finance economy and investment,

together with the Malta-eu

steering Action committee

(MeusAc) and the Malta

council for economic and social

development (Mcesd).

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4 Communication Initiatives

initiativescommunication4 MBB

The Mbb has stepped

up its communication

initiatives with the main

objective of boosting the services

offered to the local business

community. the launch of the

Mbb’s new quarterly business

publication - business Agenda -

and its new eu & business Web

Portal www.mbb.org.mt, have

taken the Mbb’s communication

drive to the next level. the two

new initiatives both deliver the

latest developments at business

and eu level that have an impact

on local business. the development

of the Mbb’s services comes at a

time when the organisation is on

a momentum of change, adaption

and growth, where it is increasing

its efforts to position itself as a key

player on all eu-related matters of

interest, concern and opportunity

for Maltese business. throughout

2009 the Mbb also produced a

business Manifesto and organised

a number of well attended

information seminars, where the

topics discussed included a number

of hot issues on the eu front,

which had a main aim of reaching

out and informing enterprise.

business Agenda: Mbb Quarterly Publication

the new publication aims to

heighten the Mbb’s presence

amongst members whilst providing

interesting, valuable and timely

information while always keeping

a european slant. business Agenda

is aimed to be a strategic element

of the Mbb’s evolving mission

function. the Mbb’s initial role

towards its parent organisations

was to provide information and

advice on eu-related matters. over

the years this role has gradually

evolved to a more pro-active

approach seeking to provide direct

assistance to local business. this

quarterly publication is aimed

at business owners, managers

and executives within private

organisations to have a greater

voice in eu affairs. this is not the

only purpose however, business

Agenda is also meant to appeal to a

wide cross-section of national and

eu policy-makers. the publication

is therefore distributed among the

members of the Malta chamber

and MHRA, to a number of

contacts established through our

brussels office, our counterparts in

brussels namely eurochambres,

businesseurope and HotRec

and other important national and

international business contacts.

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4 Communication Initiatives

throughout the end of november

and the beginning of december,

the Mbb distributed the first

edition of the newspaper type

publication. it has been very

well received by the business

community. debate is the key word

for the success of the publication

which will strive to provide a

platform for the exchange of views

and serve as a meeting point for

both convergent and divergent

perspectives on unfolding eu

issues. the next issue of business

Agenda is set to be distributed

during the beginning of March

2010. it is sure to be an interesting

edition including features on

foreign investment in Malta, the

Accessibility of bank business

loans in Malta and interviews

with top people who are in the eu’s

limelight.

the Manifesto was especially

relevant at the time, due to

the impending changes in the

legislature of the eP, and the

considerable opportunities which

this represented for Maltese MePs

to participate in debates, votes and

decisions on a series of legislation

and reports, important to the

development of Maltese enterprise.

Moreover, the business Manifesto

had an aim to trigger better links

between the european Parliament’s

political agenda and the everyday

realities which Maltese businesses

have to operate in.

the Manifesto was presented to

MeP candidates contesting the

June 2009 eP elections, by Mr

Joe tanti and Mr omar cutajar.

interventions were made by a

panel consisting of Ms Helga ellul

(President, the Malta chamber

of commerce, enterprise and

industry) and Mr Winston J. Zahra

(Vice-President, MHRA), and the

President of Mbb – Mr George

Micallef, who pressed forward the

scope of the manifesto, through

a discussion with the MeP

candidates.

other Publications

Apart from these efforts the Mbb

also features in the publications

of its parent organisations on

a regular basis, namely on the

chamberlink, commercial

courier and the MHRA Journal.

these efforts are aimed to bring

important eu topics to centre

stage, giving an explanation and

providing other opportunities

which may be of value to their

members. Apart from providing

relevant information, these articles

allow the Mbb to increase its

visibility amongst the members

of its parent organisations. the

Mbb also remains in the public eye

through a number of press releases

and articles which are featured

in a number of local newspapers.

through this medium the Mbb

gets the position of its members

across to a wide cross-section of

Malta’s economic structure.

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launch of eu and business Web Portal

the restructuring of the Mbb’s

website into a more modern

and user friendly website, is a

parallel exercise to the launch

of business Agenda, aimed to

provide more value-added service

while also seeking to better

connect Maltese business to the

eu. the website was launched

with a primary objective of

strengthening the Mbb’s presence

amongst the members of its parent

organisations. the website’s role

is twofold. firstly it will service

the Maltese business community’s

needs vis-à-vis commercial

opportunities and information

on tenders, schemes and funding

opportunities. secondly it aims

to provide an online platform for

easy access to eu policy news,

developments, explanatory briefs

carrying a business oriented

analysis on new eu legislation and

proposals. the website is planned

to have three distinct levels of

membership, where some articles

are free to all users of the website,

while others are strictly limited to

members of the website. the new

website was launched during the

last week of november.

Mbb business Manifesto

in a press conference held on the

25th May at the Hotel Phoenicia,

floriana, the Mbb presented

Maltese MeP candidates with

a detailed business Manifesto,

with an aim of heightening the

communication between the

Maltese business community and

its representation in the eu.

the business Manifesto details

the needs and concerns of local

business at european level and

outlines how Maltese MePs

can safeguard and promote

local business needs. the Mbb

developed the Manifesto as

part of its efforts to ensure that

the interests and aspirations

of Maltese enterprises are

safeguarded. through the

Manifesto, the Mbb was able to

propose a set of concrete and

realistic recommendations,

grounded on both past experiences

as well as the expectations of

thousands of Maltese businesses,

for the improvement in the

european Parliament’s operational

framework.


5 MBB Events

eventsbureau5 Malta Business

January

on the 19th January the Mbb

organised a networking dinner

at the Hotel Phoenicia between

the Members of Parliament and

the Mbf board of trustees. the

purpose of this event was to bring

the senior officials and directors

general of the leading employer

and business representation

associations in Malta together

with the five Maltese MePs for

an exchange of views on the

key issues which were being

discussed locally and within the

eu institutions. during the dinner

the new Mbf board of trustees,

which was presided by Mr. George

Micallef throughout 2009, were

also introduced.

the Mbb saw this as an

opportunity as it fully appreciates

the invaluable role and political

strength which the european

Parliament has within the complex

decision-making process of the eu.

to this end the Mbb believe that

local business interests should also

be duly taken into account in the

european Parliament’s discussions

and elaboration of new legislation,

rules and adoption of reports.

the networking dinner thus gave

the opportunity for an informal

exchange of views on the issues

deemed of significant importance

to Malta chamber and MHRA

Members. the informal discussion

helped the Mbb and MePs to

better communicate concerns

and also the timely exchange of

information and positions in a

timely and effective manner.

16 27March

on the 27th March, the Mbb in

collaboration with the european

commission Representation office

in Malta, held a conference at

the Westin dragonara Resort, st.

Julians on the theme of “business

success and the Global economic

Recovery”. the conference

served as an opportunity to

present the results of the success

stories Project which the Mbb

was coordinating together with

the european commission

Representation office in Malta.

Key note speakers at the event

included: the Hon. Prime Minister

dr. lawrence Gonzi, the Hon.

tonio fenech Minister of finance,

economy and investment, Mr.

Günter Verheugen european

commissioner for enterprise &

industry, dr. Joanna drake Head

of the european commission

Representation in Malta and Mr.

stefano Mallia Malta business

foundation board Member.

networking dinner at the Hotel Phoenicia between the Members of Parliament and the Mbf board of trustees.


5 MBB Events

21

during the conference, parts of

an audio visual presentation were

shown to explain the details of

the research project. dr. Gordon

cordina also presented the

analytical report on the project

entitled: ‘Maltese business success

Arising out of eu Membership,

survey evidence and useful

lessons’. the report explained

the results from the business

success stories Project as well as

the findings and lessons learnt.

With regards to the report, dr.

Joanna drake stated that: “the

objective was to show that success

in europe is achievable and that

entrepreneurs can emulate the

success of others”.

A number of interventions were

made at the conference, most of

which included references to the

economic downturn, which was a

major issue at the time. Referring

to this, Prime Minister Gonzi

said that the Government plays

an essential role in contributing

to business success stating: “the

rapidly deteriorating global

economic scenario is clearly

impinging” on a constructive

business attitude “and is resulting

in extraordinary interventions

by governments across the world

in efforts to sustain aggregate

demand”. dr. Gonzi also stated that

the report drawn up by economist

dr. Gordon cordina for the success

stories Project has portrayed that

due to Malta’s economy being

so small and open its “business

cycles tend to follow those of

the eu with a close lag and are

typically and significantly more

pronounced.” He went on to say

that “it is the duty of Governments

to enable business success by

means of creating a congenial

national economic environment”,

ensuring that the government

was implementing a number of

initiatives for firms to grasp the

benefits of the single market.

“Jobs are our priority. sMes are

our largest job-generators. that is

why they will remain at the centre

of our attention.” this was the

message that Mr tonio fenech

Minister of finance, the economy

and investment put forward during

his speech at the conference. the

Minister acknowledged that sMes

are the catalysts of growth and as

a result the Government has over

the past months sought to facilitate

sMes growth potential. “the

Government appreciates that Malta

needs new and dynamic companies

that are able to avail themselves of

the benefits of the single market

and be innovative.”

commissioner Verheugen

delivered a speech on the

importance of sMes in europe and

more so in smaller countries such

as Malta, explaining that some of

the initiatives that the european

commission was currently

undertaking were to help sMes

survive these turbulent economic

times.

May

on the occasion of the 59th

General Assembly of HotRec

on the 7th and 8th of May , Mbb

President Mr. George Micallef

and ceo Mr. Joe tanti joined 40

other hotel, restaurant and café

associations from 25 different

european countries in stockholm

to discuss the challenges and

threats faced by the european

Hospitality industry during one of

the worst economic crisis

in history.

At the event worrying business

trends were reported by all

HotRec Member Associations

across europe. on the eve of

a major renewal of leadership

within the eu institutions, the

President Mr. Kent nyström, called

for a shift in eu policies based

on sound economic principles to

hasten the recovery of business.

during the event HotRec

welcomed the outcome of the

VAt saga on reduced rates, as an

example of a healthy pro-business

policy, while on the other hand,

pointed out that the commission

proposal imposing food labelling

requirements to restaurants is a

clear example of a burdensome and

inappropriate legislation which

should be withdrawn.

the swedish secretary of state

for european Affairs, Mr. belfrage,

made an interesting presentation

of the priorities of the upcoming

swedish presidency of the

eu at the General Assembly.

the participants particularly

appreciated that “competitiveness”

will top the agenda.

the General Assembly also

examined the progress carried

out by the Working Party in

charge of producing the charter

for fire safety in hotels in europe

and the fire safety methodology

promised by HotRec to the eu

institutions. the participants

positively received the first drafts

produced and expressed numerous

comments and suggestions for

improvements. this HotRec

initiative is a clear demonstration

of the hospitality and the

industry’s commitment to the

provision of safe services to

its clients.

07

14

business success and the Global economic Recovery.

May

on the 14th and 15th of May

eurochambres 16th Annual

congress kicked off in Prague,

czech Republic with the theme

“doing business Without

barriers”. Ms. Helga ellul-Malta

chamber President, ing. Ray

Muscat-Malta chamber dG

and Mr. Joe tanti - Mbb ceo,

attended the debate. discussions

revolved around a variety of topics

HoRtec General Assembly.

doing business without barriers.


5 MBB Events

23

including, the major challenges

for businesses, innovation, energy,

access to finance and trade within

the internal and foreign markets.

Günther Verheugen, Vice-

President of the european

commission responsible for

enterprise and industry and Jan

fischer, czech Prime Minister

were among the keynote speakers

of the congress opening session,

organised in conjunction with the

european commission which, on

the same occasion was concluding

its first european sMe week.

the main conclusions and results

from the congress pointed towards

education and access to foreign

markets being the top priorities for

‘business without barriers’, where

33% of the participants voted that

education and training is the main

solution to tearing down barriers

between businesses in europe.

one fourth of the participants on

the other hand, underlined the

need to ‘secure an open global

market and support european

business in accession third

markets’. internationalisation

implies huge opportunities for

businesses to increase their profits,

however enterprises feel the need

for information and support in

entering foreign markets. 16% of

voters pledged for a reduction of

regulatory and administrative

burdens so as to continue the

completion of the internal market.

other participants voted for an

increased investment in research

and development and accessible

financing instruments to alleviate

sMe cash-flow difficulties.

May

on the 22nd May the Mbb held a

business breakfast on the impact

of eu Membership on local

business. this was a supporting

event to a business survey

conducted by the Mbb through

Misco, in order to gauge the

effect of eu membership on local

business, five years after accession.

these statistics were revealed at

the business breakfast meeting

where 92% of Maltese businesses

stated that eu accession has been

beneficial for business, where the

adoption of the single currency

was cited as the most beneficial

result of membership. the Mbb

felt it was opportune to evaluate

how eu membership has affected

the Maltese business community,

2225through a survey entitled ‘the

effect of eu Membership on

Maltese business’. this was

carried out amongst the members

of the Malta chamber and the

Malta Hotels and Restaurants

Association.

the results of the survey also

revealed that access to eu funding

was also seen as a main advantage,

with one of every four respondents

stating that they viewed this

as a prime advantage of eu

membership. However many felt,

that less bureaucracy and more

information was needed when it

came to applying for funding.

the results of the survey

were presented during a very

well attended event held in

collaboration with the Hotel

Phoenicia. Mr. Anthony carabott,

General Manger at Misco

international, gave a detailed

presentation of the results of the

survey, which was followed by a

panel discussion that included, Ms.

Helga ellul (President of the Malta

chamber of commerce enterprise

and industry), and Mr. Winston J.

Zahra (Vice-President MHRA) and

Mr. George Micallef (President of

the Mbb). the business breakfast

was also addressed by Mr. Joe

tanti and was moderated by Mr

Joseph f x Zahra.

May

the Mbb organised a Press

conference on the 25th May, at

the Hotel Phoenicia, floriana

where the business Manifesto

mentioned earlier in this report,

was presented to MeP candidates

contesting the June 2009 elections,

by Mbb ceo Mr. Joe tanti,

and Mbb Permanent delegate

in brussels Mr. omar cutajar.

interventions were made by a

panel consisting of Ms. Helga

ellul (President, Malta chamber)

and Mr. Winston J. Zahra (Vice-

President, MHRA), and the Mbb

President Mr. George Micallef, who

pressed forward the scope of the

manifesto, through a discussion

with the MeP candidates.

At the press conference, the

President of the Mbb, Mr George

Micallef, stated that the Mbb was

fully committed to a follow-up of

the Manifesto where, he added

that as an organisation, the Mbb

is ready to support the elected

MePs in their work in brussels

and strasbourg, by providing them

with direct feedback from the

Maltese business community.

business breakfast on the impact of eu Membership on local business.

business Manifesto Press conference.


5 MBB Events

25

seminar about the directive on energy labelling at the conference Hall of the Malta chamber.

June

the Mbb and MeusAc in

collaboration with the Malta

standards Authority held a

seminar on the 18th June about the

directive on energy labelling at

the conference Hall of the Malta

chamber.

this event was of particular

interest to operators involved

in the manufacture, retail and

purchase of energy-related

products. this is because

manufacturers are responsible

for supplying energy labels with

appliances and providing a fiche

in the brochure, where they are

responsible for the accuracy of the

information supplied. An importer

dealing with manufacturers

in a non-eu country has the

same responsibilities as the

manufacturer, while the retailer is

responsible for attaching the right

label to the matching appliance.

the main speaker at the event

was ing. Joseph Micallef from the

Regulatory Affairs directorate

within the Malta standards

Authority, who stated that energy

labelling is important amongst

other things, as it helps to reduce

energy consumption, gives

consumers the opportunity to

compare products, and also gives

businesses a competitive edge in

their marketing. ing. Micallef

delivered a presentation outlining

the current state of play as well as

the proposed legislative changes

and other developments which

are expected in the future. He

also pointed out that the directive

imposes an obligation on suppliers

of household appliances to

provide information on the energy

consumption of each product

supplied. the seminar was also

addressed by dr. Gabriella Pace,

Head of MeusAc’s information

unit, and by Mr. Joe tanti, chief

executive officer of the Mbb.

June

on the 25th June, the Mbb and

the Malta customs division held

a well-attended seminar about the

Authorised economic operator

scheme at the conference Hall of

the Malta chamber of commerce,

enterprise and industry.

the scheme is designed to balance

increased security requirements

with facilitations for reliable

operators who trade with non-eu

countries. the seminar brought

light onto the fact that traders

who are certified under the Aeo

scheme enjoy simplifications

in both conventional customs

procedures and customs safety and

security measures. the facilitation

July

“business competitiveness is

the cornerstone underpinning

social welfare and environmental

sustainability. there can be neither

social wellbeing, nor sustainable

environmental policies in the

country unless the competitiveness

of Maltese business is actively

pursued, promoted and sustained

at the very core of all relevant

eu and national decision-making

processes.” this was the message

reiterated by a senior delegation

from the Mbb led by Mbb


during a meeting held with Prime

Minister Hon. dr. lawrence Gonzi

on the 7th July.

the Mbb delegation held an

exchange of views with Prime

Minister Gonzi on a wide

array of issues, which were

most likely to feature high on

the legislative agenda of the

european Parliament, which

was at that time in the process

of reconstitution following the

eu-wide elections held in early

June. sensitive discussions on

a new lisbon strategy, on cAP

reform, on the formulation of a

post-2013 cohesion Policy and the

restructuring of the current R&d

funding instruments at eu level

are a short-list of issues that the

then newly-elected Maltese MePs,

will be called upon to pitch in their

say during the eP legislature

2009-2014.

the Mbb presented these

considerations, submitted by our

business Manifesto to all MeP

candidates at the event in May,

within the ambit of the Mbb’s

commitment to a sustained follow-

up to the eu policy priorities

bound to shape the medium-to-

long term development of the

regulatory environment, within

which local enterprise has to

operate. A copy of the business

Manifesto was officially presented

to the Prime Minister during the

meeting.

the Mbb President George

Micallef called upon the Maltese

MePs to select the committees

they will be actively participating

in with a judicious and balanced

sense of national responsibility.

the Mbb recommended that

particular importance should be

given to the internal Market &

consumer Affairs committee, the

employment and social Affairs

committee, the transport and

tourism committee, the industry,

Research and energy committee

and the environment, Public

Health and food safety committee.

At the meeting Prime Minister

Gonzi was also briefed about the

restructuring undertaken at the

Mbb with the intent of allotting

2518

07

measures are implemented

through the issuing of a certificate

by customs, depending on the

fulfillment of specified criteria

relating to the applicant’s

operations and control system.

the legal basis of the Aeo scheme

is provided by Regulation (ec)

648/2005 amending the community

customs code and the relevant

implementing provisions as

contained in Regulation (ec)

1875/2006. the four criteria that

must be satisfied in order to obtain

an Aeo certification were also

discussed during the presentation.

seminar about the Authorised economic

operator scheme

Mbb delegation held an exchange of views with Prime Minister lawrence Gonzi.


5 MBB Events

27

october

on the 1st october, the Mbb

organised a business breakfast,

about the late Payments directive.

the meeting was organised with

August

the Mbb board of trustees held

a meeting on the 25th August,

with the leader of the opposition

Hon. dr. Joseph Muscat to have

an exchange of views and discuss

business community’s concern

at the lack of representation

within the european Parliament’s

committees. during the

meeting the Mbb expressed its

an aim to bring to the forefront the

proposed recast of the directive,

which according to european

commission expert Maarit nyman,

who was a speaker at the event,

will aim to act as a disincentive for

public and private entities against

settling late payments outside the

timeframe stipulated by law.

during her presentation, Ms

nyman, a specialist within the

sMe Policy development unit

of dG enterprise, said that the

european commission had

consulted extensively with the

business community and had

learnt that late payments were

having a negative impact on

businesses across the union. “it

has transpired that late payments

hamper the development of

business in the eu, notably for

sMes. late payments can reduce

cash flow to such an extent that

sometimes businesses, that are

otherwise viable, go bankrupt”

she said, “from our consultation

and research it appears that public

authorities have the worst track

record when it comes to settling

payments. it’s a pity as they should

be leading by example.”

A panel moderated by Mbb


generated active debate at the

meeting. the discussion panel was

made up of Ms. Maarit nyman,

Mr. Reginald fava (chairman,

of the importers, distributors

and Retailers economic Group

and of the Health care business

section, Malta chamber), Mr.

Keith fearne (chairman of the

information technology business

section, Malta chamber) and Mr.

Angelo xuereb (chairman of the

federation of building and civil

engineering contractors).

the event was organised to

elaborate upon a report compiled

by the Mbb called settling

late Payments on time, which

revealed that late payments are

a considerable problem for local

businesses. According to a survey

conducted by the Mbb amongst the

members of the Malta chamber,

many payments in commercial

transactions between businesses

or between public authorities

and businesses tend to be made

very late, often surpassing the

stipulated timeframes. Mr. George

Micallef said that the Mbb will

shortly be presenting a report to

Government: “the report will

be detailing the concerns of the

business community and setting

out concrete proposals for tackling

this sensitive issue.”

the presentations and discussions

held during the business breakfast

also saw a number of well-known

operators within the business

community expressing their views

and concerns. Reginald fava, who

was present on behalf of the Malta

chamber to represent importers,

distributors and retails, stated

that he was “disappointed that

no government representative

attended the meeting”.

He went on to say that the proposed

recast of the directive to address

late payments was certainly

welcome, but he was concerned

that the proposals would not

adequately address the issue.

“the proposals for the recast of

the directive focus on introducing

interest when payments are not

issued on time. this is not what

we are after. We simply want to

have a limit - that makes business

sense - to the length of time we

have to wait before being paid.

Anything over a 90 day period is

simply business not worth doing”

he stated.

Angelo xuereb said that businesses

are not financial institutions.

He expressed his scepticism on

the effectiveness of the proposed

recast of the directive, especially

“because the new rules emanating

from the directive are optional.” He

explained that it would be difficult

for contractors to include a right to

charge interest on late payments as

it could be viewed as a downfall by

potential clients.

Keith fearne, representing the

it sector, said that he felt that the

national tribunal system “is not

efficient enough to settle small

payments.” He suggested that

the setting up of a special system

might be a solution to the current

situation, and would avoid drawn-

out and expensive court cases

“which discourage businesses,

especially sMes, from applying the

legislation into their practice.”

other issues that were highlighted

during the discussion were the

loopholes by which paying parties/

debtors may find ways to work

their way around this legislation

in a more indirect manner, rather

than by inserting a flexibility

greater resources to provide more

and better services to Maltese

businesses.

finally, the discussion between

the Prime Minister and the Mbb’s

delegation focused on how the

Mbb can better communicate

on key eu-related issues and the

eu consultation process. Prime

Minister Gonzi acknowledged

the work being done by the Mbb

however, it was agreed that

the Mbb needs to step up its

communication efforts with the

institutional stakeholders and the

Maltese business community

at large.

2501

disappointment at the lack of

representation of Maltese MePs

in the tourism and transport

committee (tRAn) and the

industry, Research and energy

committee (itRe), which are of

particular relevance to the Maltese

business scenario.

dr. Muscat noted the position

expressed by the Mbb but

highlighted the fact that the

Maltese MePs will be sitting on the

internal market and environment

committees, amongst other things.

the meeting followed a discussion

concerning approved european

legislation having a direct bearing

on Maltese business.

Mbb board of trustees meets opposition leader Joseph Muscat to discuss business’ concern.

business breakfast about the late Payments directive.


5 MBB Events

29

the implications of the financial

crisis on the euromed partner

economies. A networking reception

was held in the evening of the 4th

november at the private residence

of the Maltese Ambassador to

belgium.

november

on the 5th and 6th november Mbb

President Mr. George Micallef,

Mbb ceo Mr. Joe tanti and

MHRA ceo Mr. George schembri

attended the HotRec 60th General

Assembly in barcelona. six months

after the General Assembly in

stockholm, hospitality business

trends reported across europe

were still very worrying and the

recovery was still slow in many

member states. Given the hostile

economic climate, the President

Kent nyström renewed HotRec’s

call for a shift in eu policies

to hasten the recovery. At the

Assembly he stated; “it is now

great time for the eu to anchor pro-

business policies, better regulation

and burden reductions in the heart

of its daily activities”.

in this context, HotRec showed

its support for the Member states

which were already making

use of the possibility to apply

reduced VAt rates to hospitality

services, and strongly encouraged

other Member states to follow

in the same path to help the

hospitality business to survive

through the crisis. Moreover,

HotRec pointed out that the new

commission should withdraw the

burdensome and inappropriate

proposal imposing food labelling

requirements to restaurants,

suggested by the predecessor.

on the occasion of the 60th

General assembly the participants

were presented with the new

HotRec publication entitled

“some 60 measures affecting the

european Hospitality industry”.

this publication focuses on

measures from the eu of most

direct relevance to the industry.09 04 051916

clause into the contract of sale as

allowed by the draft directive. this

is especially evident when tenders

are issued and certain terms and

conditions are implied, where the

stipulated timeframes are longer

than those laid down by law.

october

the brussels office hosted a group

of boV officials for presentations

at the la Vallette business centre

on thursday 9th october. the

group that was on an informal visit

to brussels had the opportunity

to hold an exchange of views with

officials from dG ecofin. the

meetings were organised with

the purpose of informing the

boV group of the implications

of the current excessive deficit

procedure opened by the european

commission against Malta and

several other member-states due to

the spiralling public deficits. the

Mbb brussels office facilitated

an informal gathering of Maltese

expatriates living and working in

brussels with the purpose for the

boV officials to be better informed

of the retail financial needs of

the Maltese community living

abroad. boV are in the process of

developing a tailored-made package

for the Maltese expat community

in brussels and luxembourg.

november

in another event, the brussels

office part-hosted a visit by

senior executives from the

Mediterranean bank network

(Mbn) on 4th november for a joint

seminar cePs-Mbn seminar on

the difficulties encountered by

euromed business in obtaining

access to finance. senior officials

from the directorate-General

for trade within the european

commission addressed the group

of bank executives on the current

state of play of the euromed

free trade area and the political

developments linked to the union

for the Mediterranean as well as on

november

As of the 16th november, the

Mbb officially started operations

from new premises at casa

leone, in floriana. the premises

were previously occupied by the

federation of industry up until last

January before the merger with the

Mbb officially started operations from new premises at casa leone, in floriana.

november

on 19th november, the Mbb

organised a business seminar

to analyse the implications and

discuss the ongoing process linked

to the imminent transposition of

the eu services directive. this

directive propelled a number of

amendments to local licensing

regulations affecting a wide cross-

section of local business sectors

such as the travel and tourism

industry, the regulated professions

like auditing and engineering,

besides the general licensing

regulations.

HotRec 60th General Assembly in barcelona.

eu services directive business seminar.

Malta chamber of commerce took

place. the offices are being shared

with the foundation for Human

Resources development, where the

Mbb occupies the first floor of the

building.


5 MBB Events

31

december

between the 2nd and 5th december

Malta chamber President Ms.

Helga ellul, Malta chamber dG

ing. Ray Muscat and Mbb ceo

Mr. Joe tanti were present for

businesseurope’s council of

Presidents in stockholm.

At the meeting businesseurope

pointed out that the responses to

the economic and financial crisis

are beginning to produce results,

but in counter said that recovery is

fragile and that europe is lagging

behind in the global upturn.

in order to ensure a sustained

recovery, businesseurope

believes it is crucial to restore

access to finance for companies,

in particular to sMes. it is also

essential that new capital rules

remain proportionate, avoiding

any further credit constraints.

businesseurope believes that

europe must avoid being caught

in a policy dilemma. stimulus

policies are a key factor of the

current economic rebound. it was

pointed out that growing fiscal

imbalances will soon put upward

pressure on long-term interest

rates and crowd out private

investment. businesseurope

suggested that the eu council

can break the circle by first of all

defining an exit strategy from the

unprecedented public intervention

in the economy, and secondly by

preparing its implementation in

2011 by speeding up structural

reforms in 2010.

in light of the un climate

change negotiations which were

taking place in copenhagen,

businesseurope also highlighted

a number of factors involved to

make the agreement a success

for european companies. some

factors included establishing a

shared vision for long term global

action to combat climate change,

committing all developed countries

to internationally legally binding

and strong emission reduction

targets and creating a level playing

field worldwide for internationally

traded goods. businesseurope also

stated that not enough commitment

has been placed on measures that

connect the strength of free trade

and the market economy to boost

technological cooperation to fight

against climate change. According

to businesseurope, greater priority

should be given to research and

development in the fields of energy

and clean-technology in the new

eu budget, and this is essential

if environmental protection

and economic growth are to be

reconciled.

on another note with regards to

the lisbon strategy for Growth

and Jobs, businesseurope

recommended that this strategy

should be based on five strategic

objectives, namely: deepening

economic integration and restoring

financial stability, enhancing

innovation, entrepreneurship

and skills, putting modern

employment policy in place,

integrating energy, environmental

and competitiveness policies and

finally shaping globalisation and

fighting protectionism.

Minister of finance, the economy

and investment tonio fenech

introduced the seminar and

welcomed the services directive

as it comes at a timely period

when many economists and

commentators are starting to

predict signs of recovery in the

world economy while showing

concern as to how much recovery

of jobs there will be. Minister

tonio fenech argued that the

introduction of this directive into

our legislation will provide us with

yet another tool that will allow us

to make the best use of the benefits

that come with eu accession. “it is

a legislation that fits in perfectly

with our primary objective that of

creating better jobs.”

subsequently, Ms. Maria canal-

fontcuberta, legal officer at

dG internal Market within the

european commission delivered a

speech about the expected cross-

border commercial benefits to

be generated through a proper

and even implementation of the

services directive.

the audience was addressed from

the national viewpoint of the

implementation process by Ms.

Phyllis farrugia from the Malta

Government task force (Mfei)

who gave a detailed presentation

on the transposition process of the

directive in Malta and its effect on

business.

following the break, Mr. carlos

Almaraz, deputy-director

internal Market department of

businesseurope elaborated on the

european business expectations

in relation to the transposition

of the directive into the national

statute books of all the eu-27

member states. Mr. Almaraz

stated that despite some progress,

there are serious risks of late and

incorrect transposition, and that

Member states must continue their

efforts beyond the 28 december

implementation deadline.

the european business perspective

was complemented by a focused

national case-study from the uK

delivered through a recorded

presentation by Ms. Karen

clements, consultant on eu

Affairs at the british chambers

of commerce. Ms. clements gave

an insight into the process leading

to the setting up of the point of

single contact within the uK public

administration.

Mbb ceo, Mr Joe tanti stated

that “the Mbb plans to present

Guidance notes for the business

community, in a tangible and

easy-to-read format with the aim

to inform and give local business a

head start” vis-à-vis the facilitation

of cross-border business

establishment within the european

single Market.

A panel prompted by Ms.

Vanessa Mcdonald (editor

di-ve news portal) provided the

platform for an exchange of

views by representatives of the

Malta chamber, the MHRA and

representatives of professional

organisations. the discussion

panel included the participation

of: Mr. Kevin J borg (director

General of the Malta chamber

of commerce, enterprise and

industry), Mr. George schembri

(ceo of the Malta Hotels and

Restaurants Association), Mr.

Julian J Mamo (chairman of

the service Providers economic

Group, Malta chamber), Mr.

benjamin Rizzo (President of the

Malta federation of Professional

Associations) and Mr. Godwin

Warr (director General commerce

division, Mfei).

02

businesseurope’s council of Presidents in stockholm.


of eventscalendar6 MBB

6 Calendar of Events

January

16.01:

networking dinner at Hotel

Phoenicia between MePs and Mbb

board of trustees

16 27

252207

07

1430March

27.03:

conference on sMe: the Key to

Global economic Recovery

March

30.03:

Appointment of new

ceo Mr. Joe tanti

April

07.04:

Appointment of new executives:

Ms. Amanda sciortino and

Ms. Mariella scicluna

May

07.05-08.05:

HotRec 59th General

Assembly in stockholm

May

14.05-15.05:

eurochambres 16th

Annual congress

May

22.05:

business breakfast on the impact

of eu Membership on Maltese

business at Hotel Phoenicia

May

25.05:

Press conference on the

Presentation of business

Manifesto to the MePs at

Hotel Phoenicia

June

18.06:

seminar on the energy labelling

directive at the Malta chamber

conference Hall

18

25June

25.06:

seminar on the Authorised

economic operator scheme at the

Malta chamber conference Hall

07July

07.07:

Meeting with Prime Minister

Hon. dr. lawrence Gonzi and

Presentation of business

Manifesto to Government

01August

01.08:

Preparatory work on new it

infrastructure and office Move


6 Calendar of Events

1619

2325 26

270301

05August

25.08:

Mbb board meeting with

leader of the opposition

Hon. dr. Joseph Muscat

october

01.10:

business breakfast on the late

Payments directive at the

Hotel Phoenicia

september

23.09:

Appointment of new apprentice

at the brussels office,

Mr. yves cordina

november

05.11-06.11:

HotRec 60th General

Assembly in barcelona

november

16.11:

Mbb office Move to new offices

at casa leone

november

19.11:

business breakfast on the services

directive at the Hotel Phoenicia

november

26.11:

launch of new Mbb Website

november

27.11:

Publication of 1st issue of business

Agenda

december

03.12-04.12:

businesseurope council of

Presidents in stockholm

Mbbofficescasa leone

Pjazza Robert samut

floriana, Malta

tel: 00356 2122 4415

fax: 00356 2124 5223

email: [email protected]

Avenue d’Auderghem

b-1040 brussels

belgium

tel: 0032 4859 81124

0032 4859 81124

fax: 0032 2736 0855

email: [email protected]

Documents

MBB Annual Report 2009